Samsung takes critical step to turn around struggling chips business

Samsung's memory chip business, which used to be its cash cow, has been struggling over the past couple of years. The primary reason for its struggles is the inability to sell enough high-bandwidth memory (HBM) chips to Nvidia due to some issues. Now, the South Korean firm has reportedly taken a critical step to improve its HBM business.

According to a report from Financial Economic TV (via @Jukanlosreve), Samsung has started the sample production of HBM4 chips. These samples, which are being made at its Pyeongtaek Campus, will be shipped to potential clients, including Nvidia, for performance evaluation. If the internal evaluation goes through without any major issues, the chips will go through the remaining processes, such as packaging and final verification.

If Samsung manages to secure a certification from Nvidia for its HBM4 chips, the HBM market will undergo a significant transformation. The South Korean firm encountered substantial challenges related to heat dissipation with its HBM3E chips, preventing them from being shipped to Nvidia for the AI chipmaker's flagship AI accelerator. Despite Samsung reportedly redesigning its HBM3E chips, it has yet to receive Nvidia's certification for these revised chips.

Samsung's rivals SK Hynix and Micron have outperformed its HBM3E chips in terms of performance and stability. Therefore, Samsung's HBM4 chips must perform well to regain its position in the market. If successful, Samsung will significantly improve its revenue and profit compared to the past two years.